Which of the Following Temporary Differences Creates a Deferred Tax

question 20

Multiple Choice

Which of the following temporary differences creates a deferred tax liability?

• A) Accumulated tax depreciation in excess of book depreciation on a building.
• B) Accumulated tax amortization in excess of book amortization on a customer list.
• C) Compensation expensed for book purposes but deferred for tax purposes.
• D) Both "Accumulated tax depreciation in excess of book depreciation on a building" and "Accumulated tax amortization in excess of book amortization on a customer list" create a deferred tax liability."

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Definitions:

Counter-controlled

Refers to loops that execute a specific number of times, using a counter to track iterations.

While Loop

A control flow statement that allows code to be executed repeatedly based on a given Boolean condition.

Initial Expression

The starting point or condition often used in the initialization of a programming loop or construct.

For Loop

A For Loop is a control flow statement in programming that repeatedly executes a block of code a set number of times.